The General Roberts Hotel has won a court appeal to stay open until 2am after the trading hour extension was rejected by Newcastle council.
The New Lambton pub will be allowed to stay open two hours later a night on a trial basis after winning approval in the NSW Land and Environment Court.
The venue applied in 2022 to push its closure time from midnight to 3am Monday to Saturday and from 10pm to midnight on Sunday.
City of Newcastle asked the applicant to withdraw the request as it "could not be supported" due to noise and amenity impacts.
But the applicant did not withdraw and instead submitted an amended application to open until 2am Monday to Saturday.
The council refused the application and the applicant lodged an appeal in the NSW Land and Environment Court against that decision.
An amended venue management plan was lodged with the appeal which included a reduction in the approved capacity of the hotel, currently 508 patrons, to a maximum of 250 after midnight.
This would be reduced to 120 from 1am to 2am and no new patrons would be allowed to enter the pub after midnight.
The council argued that the later closure would result in an unacceptable noise impact on neighbours, and the proposed hours were inconsistent with the Newcastle Development Control Plan and the Newcastle After Dark: Night-time Economy Strategy as the pub is located outside the seven designated late night precincts and isn't a 'low impact venue'.
Residents who lodged objections to the development application also raised their concerns in court.
But Commissioner Danielle Dickson found any impact on public safety would be "adequately mitigated" and managed by a venue management plan and conditions of consent, including use of a sound limiter, closure of windows and patrolling of Lambton Road at least every 20 minutes from 11.30pm.
Commissioner Dickson was satisfied the proposed extended trading hours "will not impact on the amenity of surrounding properties or the character of the neighbourhood".
